Coinbase has officially acquired the Cyprus-based unit of the European trading platform BUX, previously known as BUX Europe Limited. This strategic decision will enable Coinbase to secure a position in the European market for contracts for differences (CFD) and other financial products.
Coinbase's Strategic Move
The acquisition will allow Coinbase to occupy a position in the highly competitive CFD market. The CySEC license enables the crypto exchange to offer complex financial derivatives, which are especially popular among professional and institutional investors. It will also facilitate further business expansion within the European Economic Area.
Details of the BUX Acquisition
The deal was completed in October 2024, further indicating Coinbase's intention to strengthen its presence in Europe's regulated markets. BUX, based in the Netherlands, initially transferred its Cyprus clients to broker AvaTrade before selling its unit to Coinbase.
Crypto Exchanges Enter the CFD Market
Coinbase's acquisition of BUX's Cyprus-based unit coincides with a growing interest from crypto exchanges in the traditional financial market. CFDs allow traders to engage with asset price fluctuations without owning them directly and have long been popular among professional traders. Exchanges like Crypto.com and Binance are also actively entering the CFD market. This trend highlights the expansion of certified financial services by exchanges to enhance competition.
With the new CIF license, Coinbase strengthens its position and expands access to institutional investors across Europe. This approach aligns with the increasing demand for regulated financial products in the cryptocurrency sphere.
